Paramount to buyout out Go Air

[Sky Dancer]

Just when we were trying to figure out what the aviation whizz kids who run Paramount and Go Air are planning to do to stay in business....Mr.T has outdone himself , he's buying into Go Air...now that's a business plan that would have a lot of management experts scratching their heads..:}:ok:

[IndAir967]

Source ?:8

[Wannabe Flyer]

It's all over the news and Mr T. is saying he will not elaborate till the deal is signed.

Structure seems like follows

100 crs cash to wadia (that is 400 pilots bond money at 25L a piece)
400 crs debt to be assumed by paramount
Wadias to hold 7% of new venture which will be named Go "to hell" Paramount!


one wonders what will happen of the 2 aircraft impounded by the HC for unpaid dues to the tune of $1.2 million????

http://www.pprune.org/south-asia-far-east/390353-high-court-moved-seize-paramount-aircraft.html


;)

Edited for typo error.

[P-air]

one wonders what will happen of the 2 aircraft impounded by the HC for unpaid dues to the tune of $12 million????

A little over-exagerrated dont you think.

Try re-reading the article again, and I think you will find its only 1.2 million.

[AviatorVette]

do u guys think this is a good idea for paramount?

[courseitsfixed]

This info is like Paramounts expansion plans including 40 more E Jets/increasing fleet size with more leased aircraft/getting A330/A350/A380/B787/B777 starting international services to Europe and USA etc etc.If you were to colllate all the plans and speechs of Paramount into a book it would indeed be a thick tome............

[Wannabe Flyer]

Well consolidation is a natural part of business. There are far too many airlines servicing too few people. Over supply has caused fares to spiral downwards and become not viable. This has led to chaos in this industry.

Deccan went, then Sahara, GO has never minced it's words that they want to exit so if they are getting a deal they should. This will leave AI KF JET SPICE INDIGo and a clutch of smaller regional players (paramount included)

In the end another one maybe even 2 might go in order to have a viable business model. This will be good for the industry. From the passenger perspective, well no more 1 buck fares for sure, but I don't see the prices becoming so un affordable also (remember Indian Railways still exists).

Once the new terminals (integrated ones) open in Delhi and then Mumbai there is a potential for Indian airlines to use thier geographical advantage and get transit business from the ME as well as Africa which currently is going to EK.

Slow and steady and it will pan out, meanwhile all those who have rushed in with no reserves will need to exit.

Personally I would not buy GO if I was an airline operator. There is no dearth of routes and aircraft availible.

Deccan Sahara should have been allowed to go bust. Would have woken all up earlier. Similarly they should allow the next airline to go bust so reality sinks into investors, flying public and the government.

[Schumi - Red Baron]

Deccan Sahara should have been allowed to go bust. Would have woken all up earlier. Similarly they should allow the next airline to go bust so reality sinks into investors, flying public and the government.


And what about thousands of people working for these organisations. :(

[silent_scream]

Am not sure how well the Go Air buy out went. But now Paramount seems keen on buying ATR's.
I hear they had Interview rounds for Induction of Type Rated Co-Pilots on ATR's a couple days back.
Would that mean some openings for fresher's as well ?
Any one got any info ?

Silent.

[Wannabe Flyer]

And what about thousands of people working for these organizations. http://images.ibsrv.net/ibsrv/res/src:www.pprune.org/get/images/smilies/sowee.gif

Sad but a fact of life. People loose jobs all the time. Unfortunately business is not a charitable institution. No other answer besides that cause this is the reality across the world.

Business men and management people are not really bothered about people's feelings, sentiments, suffering etc.
To be a good successful businessman, you should be immune to emotions.

Good business people are worried all the time as they realize people make up a considerable part of their model. However if the times change and there is a need to survive a tough decision needs to be taken to trim a few jobs to save many more.

To be a successful business person you need to have a sound business plan and not a plan that is hinged entirely on an exit strategy a la deccan.

I still stand by original statement that fewer airlines in India will be better for the entire aviation industry including the employees who will then see sustainable growth. Doubt Rs 1 fares were enough to pay the salaries ever.